Each Pakistani now owes PKR 295,000 in debt to national and international entities. This figure underscores the growing financial pressures on the country due to the government’s reliance on debt to operate.
According to the Ministry of Finance, Pakistan’s total debt has escalated sharply from PKR 8.36 trillion to PKR 71.24 trillion. This surge is a notable jump from last fiscal year’s PKR 62.88 trillion, representing 67.2% of the nation’s GDP.
The breakdown shows domestic debt climbing by PKR 8.350 trillion, totalling PKR 47.160 trillion. Conversely, external debt amounts to PKR 33.062 trillion, with the net government external debt at PKR 21.75 trillion.
Additionally, the debt to the International Monetary Fund (IMF) has risen by PKR 292 billion to PKR 2.33 trillion.
Read: How Much Interest Has Pakistan Paid on Foreign Loans in Five Years?
Delving into domestic debt specifics, federal government bonds comprise the largest portion at PKR 32.8 trillion. This includes PKR 28 trillion in Pakistan Investment Bonds (PIBs) and PKR 4.77 trillion in Sukuk bonds. Moreover, prize bonds account for PKR 345 billion, foreign currency loans within domestic debt are PKR 374 billion, and Naya Pakistan Certificates total PKR 84 billion.
This escalating debt highlights Pakistan’s critical financial challenges. Every citizen is now burdened by a significant debt quota.
The rise in domestic and external debt underscores the urgent need for comprehensive economic reforms and careful fiscal management. The government’s strategy must prioritize boosting revenue, curbing expenditures, and driving economic growth to manage and ideally reduce this burgeoning debt load.
